UK inspires Synchron insurance product structure
Non-aligned risk specialist dealer group Synchron has designed an insurance product structure for the Australian market following a recent fact-finding mission to the UK.
In a statement issued earlier this week, Synchron said the UK-inspired product design was an effort to pre-empt any official policy move on risk remuneration.
“We noticed that in the UK, most policies are written on a level premium, set-term basis,” Synchron director Don Trapnell said.
“We have designed a product structure along similar lines and have put it out to tender to select life insurers.”
Mr Trapnell added that the proposed product structure has attracted interest from three life insurers, with another asking to be involved.
“The structure we have designed provides the ability for the adviser to personalise the product to the specific needs of the client,” Mr Trapnell said.
“The product will have a number of level premiums and will be for a set term.
“Premium structures at first indication are comparable to current yearly renewable term rates and remuneration will be structured so there is flexibility to enable an adviser to mould the revenue to suit the effort required to secure the business,” he said.
He added that he believes the product structure design will benefit advisers, licensees, insurers and the consumer.
“The industry is changing at breakneck speed," Mr Trapnell said. “While we are pleased by recent announcements from AMP and Centrepoint, there are other levers that need to be pulled and addressed.”
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